XML 62 R42.htm IDEA: XBRL DOCUMENT v3.20.4
FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Jan. 03, 2021
Financial Instruments [Abstract]  
Disclosure of detailed information about financial instruments
The carrying amounts and fair values of financial assets and liabilities included in the consolidated statements of financial position are as follows:
January 3, 2021December 29, 2019
Financial assets
Amortized cost:
    Cash and cash equivalents$505,264 $64,126 
    Trade accounts receivable196,480 320,931 
    Financial assets included in prepaid expenses, deposits and other current assets
88,781 45,950 
    Long-term non-trade receivables included in other non-current assets
1,435 2,933 
Derivative financial assets included in prepaid expenses, deposits and other current assets
4,947 9,816 
Financial liabilities
Amortized cost:
    Accounts payable and accrued liabilities (1)
$326,069 $395,564 
    Long-term debt - bearing interest at variable rates800,000 645,000 
    Long-term debt - bearing interest at fixed rates (2)
200,000 200,000 
Derivative financial liabilities included in accounts payable and accrued liabilities
17,653 11,067 
(1) Accounts payable and accrued liabilities include balances payable of $27.6 million (December 29, 2019 - $39.6 million) under supply-chain financing arrangements (reverse factoring) with a financial institution, whereby receivables due from the Company to certain suppliers can be collected by the suppliers from a financial institution before their original due date. These balances are classified as accounts payable and accrued liabilities and the related payments as cash flows from operating activities, given the principal business purpose of the arrangement is to provide funding to the supplier and not the Company, the arrangement does not significantly extend the payment terms beyond the normal terms agreed with other suppliers, and no additional deferral or special guarantees to secure the payments are included in the arrangement.
(2) The fair value of the long-term debt bearing interest at fixed rates was $221.3 million as at January 3, 2021 (December 29, 2019 - $206.4 million).
Disclosure of detailed information about hedging instruments
The following table summarizes the Company’s commitments to buy and sell foreign currencies (cash flow hedges) as at January 3, 2021:
Carrying and fair valueMaturity
Notional foreignAverageNotionalPrepaid expenses,Accounts
currency amount exchange  U.S. $ deposits and otherpayable and
0 to 12
equivalentrateequivalentcurrent assetsaccrued liabilitiesmonths
Forward foreign exchange contracts:
Sell GBP/Buy USD33,069 1.3090 $43,287 $— $(1,784)$(1,784)
Sell EUR/Buy USD33,571 1.1816 39,668 — (1,736)(1,736)
Sell CAD/Buy USD45,591 0.7594 34,623 — (1,111)(1,111)
Buy CAD/Sell USD21,669 0.7077 15,336 1,626 — 1,626 
Sell AUD/Buy USD7,387 0.7218 5,332 — (346)(346)
Sell MXN/Buy USD168,727 0.0455 7,683 28 (693)(665)
$145,929 $1,654 $(5,670)$(4,016)

The following table summarizes the Company’s commitments to buy and sell foreign currencies (cash flow hedges) as at December 29, 2019:
Carrying and fair valueMaturity
Notional foreignAverageNotionalPrepaid expenses,Accounts
currency amount exchange U.S. $deposits and otherpayable and
0 to 12
equivalentrateequivalentcurrent assetsaccrued liabilitiesmonths
Forward foreign exchange contracts:
Sell GBP/Buy USD32,737 1.2750 $41,739 $187 $(1,169)$(982)
Sell EUR/Buy USD35,236 1.1341 39,960 502 (78)424 
Sell CAD/Buy USD58,212 0.7612 44,309 49 (130)(81)
Buy CAD/Sell USD31,287 0.7514 23,510 342 — 342 
Sell AUD/Buy USD7,691 0.6974 5,364 38 (32)6 
Sell MXN/Buy USD272,914 0.0504 13,761 — (356)(356)
$168,643 $1,118 $(1,765)$(647)
The following table summarizes the Company's commodity contracts outstanding (cash flow hedges) as at January 3, 2021:
Carrying and fair valueMaturity
Prepaid expenses,Accounts
Type ofdeposits and other payable and
 0 to 12
commodity
Notional amount (1)
current assetsaccrued liabilitiesmonths
Forward contractsCotton
16.2 million pounds
$1,582 $— $1,582 
Swap contracts Synthetic fibres
3.9 million pounds
— (781)(781)
Swap & option contractsEnergy
6.4 million gallons
1,300 (258)1,042 
$2,882 $(1,039)$1,843 
(1) Notional amounts are not in thousands.

The following table summarizes the Company's commodity contracts outstanding (cash flow hedges) as at December 29, 2019:
Carrying and fair valueMaturity
Prepaid expenses,Accounts
Type ofdeposits and otherpayable and
 0 to 12
commodity
Notional amount (1)
current assetsaccrued liabilitiesmonths
Forward contractsCotton
133.7 million pounds
$3,494 $(198)$3,296 
Swap contracts Synthetic fibres
60.6 million pounds
— (6,859)(6,859)
Swap & option contractsEnergy
8.5 million gallons
1,185 (186)999 
$4,679 $(7,243)$(2,564)
(1) Notional amounts are not in thousands.
The following table summarizes the Company’s floating-to-fixed interest rate swap contracts outstanding (cash flow hedges) as at January 3, 2021:
Carrying and fair value
NotionalPrepaid expenses,Accounts
amount ofMaturityFixedFloatingdeposits and otherpayable and
borrowingsdatePay / Receiverateratecurrent assetsaccrued liabilities
Term Loan(1)
$150,000 June 17, 2021Pay fixed rate / receive floating rate0.96 %US LIBOR$— $(630)
25,000 April 6, 2022Pay fixed rate / receive floating rate0.27 %US LIBOR— (48)
75,000 April 30, 2023Pay fixed rate / receive floating rate2.85 %US LIBOR— (3,800)
50,000 April 30, 2024Pay fixed rate / receive floating rate1.51 %US LIBOR— (1,886)
25,000 April 30, 2025Pay fixed rate / receive floating rate1.06 %US LIBOR— (755)
25,000 May 30, 2025Pay fixed rate / receive floating rate0.47 %US LIBOR— (30)
Unsecured Notes
50,000 August 25, 2023Pay fixed rate / receive floating rate1.18 %US LIBOR— (1,330)
50,000 August 25, 2026Pay fixed rate / receive floating rate1.34 %US LIBOR— (2,465)
$— $(10,944)
(1) The notional amounts for the interest rate swap contracts maturing in 2023, 2024, and 2025 are extensions to the $150 million interest rate swap contracts originally entered into related to the $300 million term loan.

The following table summarizes the Company’s floating-to-fixed interest rate swap contracts outstanding (cash flow hedges) as at December 29, 2019:
Carrying and fair value
NotionalPrepaid expenses,Accounts
amount ofMaturityFixedFloatingdeposits and otherpayable and
borrowingsdatePay / Receiverateratecurrent assetsaccrued liabilities
Term Loan(1)
$150,000 June 17, 2021Pay fixed rate / receive floating rate0.96 %US LIBOR$1,379 $— 
75,000 April 30, 2023Pay fixed rate / receive floating rate2.85 %US LIBOR— (1,817)
50,000 April 30, 2024Pay fixed rate / receive floating rate1.51 %US LIBOR252 (242)
Unsecured Notes
50,000 August 25, 2023Pay fixed rate / receive floating rate1.18 %US LIBOR866 — 
50,000 August 25, 2026Pay fixed rate / receive floating rate1.34 %US LIBOR1,179 — 
$3,676 $(2,059)
(1) The notional amounts for the interest rate swap contracts maturing in 2023 and 2024 are extensions to the $150 million interest rate swap contracts originally entered into related to the $300 million term loan.
Disclosure of detailed information about hedged items
The following table summarizes the Company’s hedged items as at January 3, 2021:
Change in
Carrying amount ofvalue used forCash flow
the hedged itemcalculating hedgehedge reserve
AssetsLiabilitiesineffectiveness(AOCI)
Cash flow hedges:
Foreign currency risk:
Forecast sales$— $— $(4,104)$4,104 
Forecast expenses— — 1,626 (1,626)
Commodity risk:
Forecast purchases— — 4,205 (4,205)
Interest rate risk:
Forecast interest payments— — (10,765)10,765 
$— $— $(9,038)$9,038 

No ineffectiveness was recognized in net earnings as the change in value of the hedging instrument used for calculating ineffectiveness was the same or smaller as the change in value of the hedged items used for calculating the ineffectiveness.

The following table summarizes the Company’s hedged items as at December 29, 2019:
Change in
Carrying amount ofvalue used forCash flow
the hedged itemcalculating hedgehedge reserve
AssetsLiabilitiesineffectiveness(AOCI)
Cash flow hedges:
Foreign currency risk:
Forecast sales$— $— $(972)$972 
Forecast expenses— — 342 (342)
Commodity risk:
Forecast purchases— — (1,416)1,416 
Interest rate risk:
Forecast interest payments— — 1,511 (1,511)
$— $— $(535)$535 
Disclosure of detailed information about financial expenses, net Financial expenses, net:
20202019
Interest expense on financial liabilities recorded at amortized cost (1)
$30,205 $28,659 
Bank and other financial charges (2)
14,627 8,010 
Interest accretion on discounted lease obligations3,227 3,141 
Interest accretion on discounted provisions242 287 
Foreign exchange loss (gain)229 (929)
$48,530 $39,168 
(1) Net of capitalized borrowing costs of $1.6 million (2019 - $1.3 million).
(2) Fiscal 2020 includes upfront costs of $3.9 million for the June 2020 amendments of the loans and notes agreements (note 11).
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting Hedging components of other comprehensive income (“OCI”):
20202019
Net gain (loss) on derivatives designated as cash flow hedges:
      Foreign currency risk$502 $4,566 
      Commodity price risk(12,699)(8,213)
      Interest rate risk(12,381)(10,588)
Income taxes(5)(46)
Amounts reclassified from OCI to inventory, related to commodity
price risk		9,837 16,656 
Amounts reclassified from OCI to net earnings, related to foreign currency risk, interest rate risk, and commodity risk, and included in:
      Net sales(242)(5,667)
      Cost of sales8,483 (350)
      Selling, general and administrative expenses331 417 
      Financial expenses, net (2,358)(752)
      Income taxes29 60 
Cash flow hedging loss $(8,503)$(3,917)